#Ireland #Dublin #Mallinckrodt #Therakos #CVC Capital Partners

Mallinckrodt Completes Divestiture of Therakos Business

On December 2, 2024, Mallinckrodt plc announced that it has successfully finalized the sale of its Therakos business to CVC Capital Partners Fund IX. The transaction, valued at approximately $925 million before customary adjustments, marks a pivotal step in Mallinckrodt's strategy to optimize its capital structure and focus on its core strengths in specialty pharmaceuticals.

Siggi Olafsson, the President and CEO of Mallinckrodt, expressed satisfaction with the divestiture, noting, "We are pleased to complete this transaction, which provides Therakos with an ideal partner to invest in its continued growth and advances our strategic priorities to optimize our capital structure and concentrate on our key strengths and capabilities." This move indicates Mallinckrodt's commitment to enhancing its operational effectiveness while supporting the growth prospects of Therakos under new ownership.

As part of the transaction, Mallinckrodt plans to utilize the net proceeds to reduce its net debt significantly, which is anticipated to decrease by more than 60%. This debt reduction is expected to strengthen the company's financial stability as it continues its journey of recovery and growth following its emergence from bankruptcy proceedings earlier in 2023. The firm’s financial advisors, Lazard, and legal teams including Wachtell, Lipton, Rosen & Katz, as well as Arthur Cox, facilitated this deal, ensuring a smooth transition and compliance with all legal requirements.

About Mallinckrodt

Mallinckrodt is a global entity with multiple subsidiaries specializing in the development, manufacturing, marketing, and distribution of pharmaceutical products and therapies. Their focus areas encompass a wide range of therapeutic segments, including autoimmune and rare diseases affecting various systems such as neurology, rheumatology, and oncology. The company also has a segment dedicated to specialty generic drugs and active pharmaceutical ingredients.

The divestiture comes at a time when Mallinckrodt is making substantial strides to realign its business priorities, concentrating on therapeutic areas that showcase its expertise and innovation potential. Following the sale, Olafsson reaffirmed the value that the Therakos team brings and extended well wishes for their future endeavors under CVC's management.

Seeking Future Growth

The strategic divestiture signals Mallinckrodt's broader long-term ambition to reinforce its market position and operational focus. As the pharmaceutical landscape continues to evolve under the pressures of regulatory changes, economic fluctuations, and competitive dynamics, the company is positioning itself to not only survive but thrive. By trimming excess and aligning its core operations, Mallinckrodt aims to enhance both its customer offerings and shareholder value.

Stakeholders are encouraged to stay informed about the company's ongoing developments through their Investor Relations portal. Mallinckrodt remains committed to optimizing its resources and continuing to provide solutions that cater to the specialized needs of patients worldwide.

For more information about Mallinckrodt and their commitment to advancing healthcare, visit www.mallinckrodt.com.